HomeBusinessMegawide Pursues Recovery As Construction Business Helps Cut Losses

Megawide Pursues Recovery As Construction Business Helps Cut Losses

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Megawide Construction Corp. expects its airport and land port operations to recover as COVID-19 restrictions continue to ease.

The company’s aviation business through Mactan Cebu International Airport was one of the hardest hit by domestic and international travel restrictions, contributing to financial losses since last year.

Losses in the nine months through September, however, were down 87 percent to P80.8 million while total revenue increased 27 percent to P11.5 billion.

The heavy lifting was done by its core construction business, with revenue increasing 47 percent to P10.6 billion during the period.

Megawide President and CEO Edgar Saavedra said business prospects would improve as the economy opened up.

“We are seeing the stabilization of our construction business amid the unpredictability of the operational landscape due to the different responses to the pandemic,” Saavedra said in a statement.

“We are also pleased that restrictions are slowly being relaxed to facilitate long-term planning and we expect even stronger performance in the coming months, not only for the construction segment but also for our other businesses,” he added.

Airport revenue for the nine-month period was down 63 percent to P366.24 billion, the even bigger drop compared to P2.7 billion in 2019.

But on a quarterly basis, airport operations increased 13.2 percent in the third quarter compared to the same period in 2020.

Louie Ferrer, GMR-Megawide Cebu Airport Corp. president and chief executive officer of infrastructure development, said there were positive signs that business could improve further.

Positive signs

“The recent decision of the IATF (Inter-Institutional Working Group for the Management of Emerging Infectious Diseases) to facilitate mobility between islands and boost tourism, in a context of increased vaccination and decreased infections, is definitely encouraging,” he said, referring to the inter-institutional working group that manages the pandemic.

The operations of the land port, through the Integrated Terminal Interchange of Parañaque, also contributed with revenues of P513.8 million, almost 6 percent less.

Meanwhile, the construction segment will continue to generate revenue as the company wins new contracts.

Megawide said its company with Japan’s Tokyu Construction and Tobishima Construction submitted the best offer to build a portion of the P357 billion Metro Manila Project, with the award expected before the end of 2021.

Megawide participated in the North South Commuter Rail-South Line project with Hong Kong-based Chun Wo Construction. It also plans to submit a proposal for the electromechanical and track works package for the Malolos-Clark and Solis-Calamba sections of the North South Commuter Rail project. INQ

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